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As businesses evolve and the digital marketplace expands, it’s crucial to stay updated on tax laws that can impact your operations. In 2024, Indiana has introduced important updates to its sales tax nexus rules, affecting both physical and economic presence for businesses. These changes are essential for businesses operating in or with customers in Indiana, especially those with no physical store presence.

The concept of physical nexus means that businesses with a physical location, employees, or property in Indiana are required to collect and remit sales tax. However, economic nexus rules are now also in play, meaning that businesses that make a certain amount of sales or transactions in the state—regardless of physical presence—may also be obligated to collect and remit sales tax.

For many businesses, especially e-commerce companies, this shift has major implications for tax compliance. It's essential to understand the thresholds for sales and transactions that trigger nexus and to ensure your business is in compliance with Indiana's new rules.

In this post, we’ll break down what these changes mean for businesses, explore key compliance tips, and help you navigate Indiana’s tax requirements with ease. Stay informed and avoid costly penalties by ensuring your business is tax-ready in 2024!

Transcript

1. Physical, Economic, and Affiliate Nexus Explained NEXUS RULES FOR NEXUS RULES FOR SALES TAX SALES TAX COMPLIANCE COMPLIANCE trykintsugi.com
2. OVERVIEW Economic Nexus 02 Fulfillment by Amazon (FBA) Permits and Registration 05 08 Affiliate Nexus 03 Trade Shows Conclusion 06 09 Physical Nexus 01 Click-Through Nexus Marketplace Nexus 04 07
3. PHYSICAL NEXUS Retail Location: Brick-and-mortar stores create a nexus. Inventory: Goods stored in Indiana require sales tax collection. Office Space: Any business presence qualifies. Employees: Includes sales and administrative staff. Delivery Vehicles: Direct delivery to customers establishes a nexus. Sales Tax Nexus Through Physical Presence 01
4. ECONOMIC NEXUS Thresholds: $100,000+ in sales OR 200+ transactions in Indiana. 02 Revenue and Transaction Thresholds Compliance: Registration and regular reporting required. Monthly, quarterly, or annual filing based on tax volume. Scope of Taxable Items: Tangible goods, digital products, certain services.
5. Sales via Partnerships and Affiliates Criteria: Affiliates promoting or selling goods in Indiana. Shared branding or logistics presence. Updates for 2024: Enhanced record-keeping. Stricter compliance measures. 03
6. Nexus from Online Referrals Definition: Agreements with Indiana residents generating $10,000+ from referrals. Requirements: Notify customers at purchase. Annual summary of taxable sales. 04
7. MARKETPLACE NEXUS Marketplace Obligations: Collect and remit taxes on behalf of third-party sellers. Maintain transaction records. 05 Rules for Facilitators and Remote Sellers Penalties for Non-Compliance: Fines and interest on overdue amounts.
8. Sales Tax Compliance for Event Sellers 06 Requirements: Register for a sales tax permit. Collect and remit sales tax during the event. Key Note: Applies to physical and digital transactions.
9. MARKETPLACE COMPLIANCE NEXUS: RESPONSIBILITY Created by inventory in Indiana warehouses. Amazon collects taxes for sales on its platform. Accurate record-keeping and remittance. 07
10. Steps to Register: Confirm tax obligations. 1. Gather required business details. 2. Register via INBiz portal. 3. File the BT-1 application. 4. Outcome: Obtain a Taxpayer Identification Number (TID). 07
11. STAY COMPLIANT IN INDIANA! Understand and adhere to nexus rules. Regularly review changes to compliance requirements. Maintain detailed records for audits. 08
12. CONNECT WITH US. THANK YOU THANK YOU growth@trykintsugi.com +1 (415) 840-8847 trykintsugi.com